Financial Data and Key Metrics Changes - Mativ's full year 2025 net sales were just under $2 billion, up 2.5% organically and modestly on a reported basis compared to the prior year [18] - Adjusted EBITDA for 2025 was $225 million, up 3% versus the prior year, with a favorable price to input cost ratio and lower SG&A expenses contributing to this growth [18][19] - Free Cash Flow reached a record $94 million in 2025, more than doubling the previous year's result, driven by operating cash flow of nearly $134 million, which increased by over 40% compared to the prior year [24] Business Line Data and Key Metrics Changes - In Q4, net sales for the Filtration and Advanced Materials (FAM) segment were $177 million, up over 5% year-over-year, with adjusted EBITDA increasing by 26% to $33 million [20] - The Sustainable & Adhesive Solutions (SAS) segment saw net sales of $285 million, largely flat year-over-year on an organic basis, with adjusted EBITDA of nearly $39 million, increasing by more than 8% year-over-year [21] Market Data and Key Metrics Changes - The company faced headwinds in the SAS segment, particularly in automotive tapes and release liners in Europe, but remains optimistic about overcoming these challenges [12][35] - The FAM segment experienced growth in transportation and industrial filtration, indicating resilience despite market volatility [36] Company Strategy and Development Direction - Mativ's strategy is built on three pillars: enhancing commercial excellence, strengthening the balance sheet, and optimizing the portfolio [6][30] - The company is focusing on cash flow generation and disciplined capital deployment, with an expectation of $15 million-$20 million in additional cost savings in 2026 [28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of agility in navigating a complex macroeconomic environment characterized by geopolitical instability and trade dynamics [13] - The company is optimistic about its ability to adapt and grow, with a focus on profitable growth and execution in 2026 [15][30] Other Important Information - Mativ's cultural transformation has fostered agility, speed, and accountability, which are seen as critical to navigating market challenges [5] - The company plans to leverage AI as a foundational enterprise capability to enhance productivity and operational efficiency [16] Q&A Session Summary Question: Can you provide more detail on the specific businesses under pressure in SAS and potential catalysts for improvement? - Management noted weakness in automotive labels and release liners in Europe but is optimistic about growth opportunities in North America and Europe [35][36] Question: How sustainable is the momentum in FAM given the current demand backdrop? - Management expressed confidence in the sustainability of growth in FAM, particularly in transportation and industrial filtration, supported by strategic investments [36][37] Question: What is the expected cadence of free cash flow in 2026? - Management anticipates a small decline in free cash flow from 2025's record levels, primarily to fund growth initiatives, with a seasonal pattern expected [39][40]